FG advocates for financial literacy to grow MSMEs sector
Worried by the poor level of financial literacy among Nigerians, the federal government has called for an urgent intervention, as its fears the current situation is impeding Micro, Small and Medium Enterprises, MSMEs, growth in the country.
The Minister of State for Industry, Trade and Investment, Aisha Abubakar, made the call in Abuja at the FATE Foundation 4th Policy Dialogue Series on Entrepreneurship.
She said there is the need to urgently address the poor level of financial literacy among MSMEs operators in the country, noting that if left unchecked, the problem could threaten the continuous existence of the MSMEs sector in Nigeria.
Abubakar, said while the MSME sector was the engine of economic growth, its impact on the Nigerian economy was being constrained as a result of financial literacy issues.
The minister said, “Nigeria is blessed with a strong entrepreneurial culture and can rightly be referred to as one of Africa’s leading entrepreneurship hubs.
“Despite the inherent benefits in this large pool of MSMEs, their viability and growth are continually threatened by a number of factors that have a strong correlation with capacity limitation in general and poor financial literacy in particular.
“Government’s efforts at unlocking access for MSMEs through strategic institutions such as the Central Bank of Nigeria, the Bank of Industry and other development finance institutions have not achieved the desired impact as the MSMEs have, according to development experts, consistently failed to provide financial information that is required to evaluate their investment requests.”
This year’s Policy Dialogue Series on Entrepreneurship had as its theme, ‘Building sustainable businesses: The case for deepening financial literacy’.